What Is In the Stimulus Bill Exactly?

TW: Here is how I frame the bill. It has three primary components: "investments"- items spent on capital goods, stabilization measures- items to support cash flows to citizens or prevent layoffs, tax benefits.

Investments $240 billion
Stabilization measures $310 billion
Tax Benefits $300 billion

Much of the Republican criticism centers on "government spending" in general (in lieu of tax cuts) or some particularly offensive program in particular. Lets take the latter first:

From Dick "Toesucker" Morris on how to beat the stimulus package:
"The same way Republicans beat it when Bill Clinton proposed a modest $35 billion stimulus in the teeth of the 1992-1993 recession. The GOP nit picked each spending item and highlighted midnight basketball courts and swimming pools that were funded in the package."

TW: So this is part of the strategy, attack every proposal regardless of materiality, inevitably the Dems will either make a mistaken proposal or merely each voter will hear about a program for which they individually do not care (could be spending $200 MM on the National Mall renovation or buying government vehicles etc.). Aggravation with these items may be real and even legitimate but should they kill the entire concept?

Secondly and more substantively where exactly are the Republcians headed relative to the big spending components.

Do they want to kill the stabilzation measures, if true they contravene classic recession economics. Cutting government funding of day to day operations durinig a downturn exacerbates the crisis, it is Hooverian economics discredited seemingly decades ago.

Do they want to kill infrastructure spending? There is broad support for infrastructure spending amidst the general public, yes the ramp up may be slower than many would like but it is needed. So do the Republicans really want to cut this element.

Obviously the Republicans support the tax cuts. But I see two real problems with the cuts currently outlined. One they will likely be saved, when the purpose is to generate demand within the economy. Some would argue shifting money from the government to private hands is beneficial in and of itself, perhaps when the economy is strong but not necessarily when demand is contracting rapidly. Two, I assure you those "business" tax credits will be the most laden with special interest and non value added attributes.

From WSJ: [TW: the bolded items are the ones I define as investments]
SPENDING
Energy:
$32 billion to fund a so-called "smart electricity grid" to reduce waste
$20 billion-plus in renewable energy, R&D on energy conservation, energy efficiency
$6 billion to weatherize modest-income homes.

Science and technology:
$10 billion for science facilities
$6 billion to bring high-speed Internet access to rural and underserved areas

Infrastructure:
$32 billion for transportation projects
$31 billion to build and repair federal buildings and other public infrastructure
$19 billion in water projects
$10 billion in rail and mass transit projects.

Aid to the poor and unemployed:
$43 billion to provide extended unemployment benefits
$20 billion to increase food stamp benefits by 13%

Education:
$41 billion in grants to local school districts
$79 billion in state fiscal relief to prevent cuts in state aid
$21 billion for school modernization
$16 billion to boost the maximum Pell Grant by $500

Health care:
$39 billion to subsidize health care insurance for the unemployed and provide coverage through Medicaid
$90 billion to help states with Medicaid
$20 billion to modernize health information technology systems

Housing:
$13 billion to repair and make more energy efficient public housing projects, allow communities to buy and repair foreclosed homes, and help the homeless

TAXES
Individuals:
$140 billion- $500 per worker, $1,000 per couple tax cut for two years; greater access to the $1,000 per-child tax credit for the working poor; expanding the earned-income tax credit to include families with three children; a $2,500 college tuition tax credit; repeals a requirement that a $7,500 first-time homebuyer tax credit be paid back over time.

Businesses: An infusion of cash into money-losing companies by allowing them to claim tax credits on past profits dating back five years instead of two; bonus depreciation for businesses investing in new plants and equipment; a doubling of the amount small businesses can write off for capital investments and new equipment purchases; allows businesses to claim a tax credit for hiring disconnected youth and veterans."